With Mike Woodson coming out and saying that the Knicks will "definitely" re-sign Jeremy Lin, it's got me thinking about the Knicks' precarious salary cap situation and, more importantly, how the Rockets can once again exploit it!

If the Knicks re-sign Lin to anything more than the Taxpayer MLE ($3.09M for the first year, and for no longer than three years), or if the Knicks instead match any offer sheet for Lin in excess of $3.09M or that is longer than three years, then the New York Knicks will be facing a HARD CAP at about $74.3M next season.

With Melo, Amare, Chandler, Douglas, Shumpert and the "dead money" that is Renaldo Balkman (who NYK stupidly waived rather than dump via trade) all on the books for next year, the Knicks have about $59.4M tied up in just five roster spots. If you assume that Lin gets an offer for the full Non-Taxpayer MLE ($5.0M) from somebody (approximately the maximum initial salary offer Lin can receive due to being an "Arenas" RFA), and that the Knicks match it, that puts the Knicks' salary at $64.4M for six spots.

That leaves New York with about $9.9M--absolute total--to spend on the remaining 6-7 roster spots, with no room to add more veterans for the minimum.

This is WITHOUT counting any potential salaries for Landry Fields, JR Smith, Steve Novak or any other meaningful Knicks contributor not specifically mentioned above.

It looks more and more likely that 'Melo will be traded - he has the most value right now and he'd do well on an established team.

Metallikid

05-12-2012 01:49 PM

The Knicks are heinously stupid. If Sam Presti was their GM they'd be favourites for the ECF and a legitimate rival to Miami. Now we'll have more talent than them in two years.

TORaptor4Ever

05-12-2012 03:42 PM

Hmmm.... I wonder if something like this could work....

'Melo to Minny

for

Beasley, Williams, B. Miller

I honestly think that's a pretty decent return for NYK and Minny gets a star perimeter guy to play off of Love. Love, Melo & Rubio would be a nice trio.

ClutchCity

05-12-2012 03:48 PM

Melo will never win anything. If you have Melo on your team, your team will never win. Even if he's your third best player you won't win. He's a loser and will always be one...

TORaptor4Ever

05-12-2012 03:58 PM

Quote:

Originally Posted by ClutchCity
(Post 643160)

Melo will never win anything. If you have Melo on your team, your team will never win. Even if he's your third best player you won't win. He's a loser and will always be one...

No arguments from me.... but I think that Minny might be an ideal place for him because all he'd have to do is score.

Love = rebounds

Rubio = play-making

Melo = shoot, shoot, shoot

jeffb

05-12-2012 04:05 PM

Quote:

Can The Knicks Get Steve Nash?
By Steve Kyler

Can The Knicks Get Nash?: After being eliminated last night in Miami, Knicks forward Amar’e Stoudemire was asked about the possibility of Phoenix free agent Steve Nash choosing the Knicks this summer as a free agent. Stoudemire said what every Knicks fan would say, that of course Nash would be a good fit in NYC.

“Everyone knows that Steve loves New York and that New York loves Steve,” Stoudemire told Frank Isola of The Daily News. “I love Steve. It would be great to have him here next year.”

The problem is the Knicks will have limited options and lots of guys to consider.

First – Jeremy Lin.

Lin will be what’s called an Arenas-rights player. He has been in the NBA less than four years, meaning the Knicks team can make him a restricted free agent by issuing a Qualifying Offer. In Lin’s case because he is not on a typical first round pick rookie deal, his Offer amount is calculated using 125% of his previous salary, or the player’s minimum salary plus $200,000, whichever is greater. In Lin’s case his minimum salary as a third year player is $854,389 plus $200,000 making his Qualifier $1.054 million.

Now enter the wrinkle. Lin does not possess Bird Rights, but the Knicks can match anything up to the Mid-Level to keep him if they restrict him. Opposing teams are limited to the Mid-Level in their initial offer, but can increase the third and fourth year of a deal so that all years average to the amount of cap space they have available. — that’s the Arenas provision.

So the wrinkle gets a little sillier, especially if a team with cap space makes a big cap space type offer. According to Larry Coon’s CBAFAQ, Lin’s maximum offer can be constructed like this:

If a team that is $9 million under the cap… [and] wants to submit a four-year offer sheet, and wants to provide a large raise in the third season, they can offer a total of $36 million over four years. The first-year salary is limited to the Non-Taxpayer Mid-Level exception, or $5 million. The second-year salary will be $5.225 million (4.5% raise). This leaves $25.775 million to be distributed over the final two seasons of the contract, with a 4.1% raise from year three to year four. So the entire contract looks like this:

Season – Salary – Notes

1 – $5,000,000 – Non-Taxpayer Mid-Level amount for 2011-12

2 – $5,225,000 – 4.5% raise over season 1

3 – $12,628,613 – This is the amount that yields $25.775 million over the final two seasons with a 4.1% raise

4 – $13,146,387 – Raise is 4.1% of season 3 salary

Total – $36,000,000 – Average is $9 million, which equals the team’s cap room

For the team making this offer, this contract would count for $9.0 million (i.e., the average salary in the contract) of team salary in each of the four seasons if they sign the player. If the player’s prior team matches the offer and keeps the player, then the actual salary in each season counts as team salary. The player’s original team is allowed to use any available exception (e.g., the Non-Taxpayer Mid-Level or the Early Bird) to match the offer.

Sources close to the situation say there could be as many as six teams willing to make an offer to Jeremy Lin, some are willing to test New York’s resolve on Lin with a deal constructed like Larry’s outline above. It’s doubtful anyone is going to make an offer that averages $9 million, but would someone do a deal that averages $6 to $7 million? – that’s probable.

In order to match such an offer, not only would the Knicks have to commit their full Non-Taxpayer Mid-Level exception to Lin, they’d also take on contract values in years 3 and 4 that would likely be taxed by the NBA more punitive Luxury Tax that kicks in in 2013.

The Knicks owe Carmelo Anthony, Amar’e Stoudemire and Tyson Chandler $60.632 million alone in 2014-2015, when year three of Jeremy’s new contract would kick in.

Second – Landry Fields

As a 2nd round pick, Landry is in sort of the same boat as Jeremy Lin. A $1.054 million Qualifying Offer gives the Knicks the right to match anything Landry is offered and teams are limited to the mid-level in their first year.

Landry is eligible for an Early-Bird contract – 175% of his salary in the previous season or 104.5% of the average salary in the previous season, whichever is greater . The Knicks can use this provision to match an contract offer without touching their full Mid-Level exception

It’s highly unlikely anyone is offering Landry a full mid-level deal, but if a team did make such an offer. The Knicks would have to use some of their Exception money to keep Landry unless he does the Knicks a huge favor and signs right out of the gate for a two-year early Bird deal

That would be incredibly foolish for Fields, as there are going to be multi-year offers from other teams.

Third – J.R. Smith

J.R. has an option year worth $2.6 million. It is possible J.R. uses it to stay in New York, but the reality is he will likely be hitting free agency and the Knicks like several other teams could use their Mid-Level exception to try and sign Smith.

The problem is, if the Knicks use the Exception on Smith, they have no means to retain Lin or Fields.

Lastly – Nash or Other Free Agents

If the Knicks use their Mid-Level Exception to try and lure in Steve Nash, they would not have the means to keep Lin, Fields or Smith – unless they did the Knicks a huge favor and signed for less than market value money.

The Knicks do have the $2.06 million contract of Toney Douglas that they could try and package with injured Rookie Iman Shumpert’s $1.633 million deal to try and swing a sing and trade, but the truth of the matter is that Steve Nash will have much larger offers, including what’s believed to be a new two-year $20 million deal with the Suns.

The Knicks have painted themselves into an interesting corner with the deals they have issued and with no first round pick this year, they are going to have to be very crafty with their minimum contract offers and it’s pretty clear they will be losing some of their guys simply because of how the economic system works.

Amar’e Stoudemire may want Steve Nash, but to get him the Knicks would have to pass on almost everyone else.

Wouldn't want a guy like Melo taking the ball from the hands of Rubio.

Bill Haverchuck

05-12-2012 05:47 PM

Quote:

Originally Posted by 10gizzle
(Post 643178)

Wouldn't want a guy like Melo taking the ball from the hands of Rubio.

This.

And in the halfcourt offense, Minny had a lot of success going inside to Pekovic and Love. It wouldn't be a good idea to re-direct the focus of the halfcourt offense, IMHO.

Bill Haverchuck

05-12-2012 05:54 PM

Quote:

Originally Posted by ClutchCity
(Post 643160)

Melo will never win anything. If you have Melo on your team, your team will never win. Even if he's your third best player you won't win. He's a loser and will always be one...

His overall NBA playoff track record sucks. But, to be fair, he did get to the EC finals in 2009 and helped Denver push the eventual champs (Lakers) to 6 games.

I really don't like his current attitude, but he was a dominant force in the 2009 playoffs. I think it's possible he could find that game again. I don't think he'll do it in New York with the current roster, but he might alonside another lineup. It wouldn't hurt if there was a strong vet presence, similar to Chauncy, saying "you ain't jacking 30 shots bro....let's get you 18-20 quality looks and move the ball"

Superjudge

05-12-2012 05:55 PM

Rubio is washed up.

Fixxxer

05-12-2012 06:22 PM

Didn't Brad Miller retire?

TORaptor4Ever

05-12-2012 08:13 PM

Quote:

Originally Posted by Fixxxer
(Post 643186)

Didn't Brad Miller retire?

LOL... yeah. I missed that. My bad.

NYK could also look at dealing him to ATL for Smith or to PHI for Iggy.....

I may be in the minority here, but I think svg would get a lot more out of NYk compared to Woodson. They got really lucky with Lin, if they don't lose him, they could be a strong team for a long time. Once amare expires in two years, they'll regain some of the flexibility, and they can outspend all other teams.

Bill Haverchuck

05-12-2012 09:53 PM

Quote:

Originally Posted by moremilk
(Post 643216)

I may be in the minority here, but I think svg would get a lot more out of NYk compared to Woodson. They got really lucky with Lin, if they don't lose him, they could be a strong team for a long time. Once amare expires in two years, they'll regain some of the flexibility, and they can outspend all other teams.

SVG gets a lot out of many players, so maybe. There have already been Anthony +Chandler for Howard and filler (probably Turk) rumours. It makes some sense if that's the best Orlando can get for Howard, and Howard is willing to sign an extension with the Knicks.

ClutchCity

05-12-2012 10:15 PM

Quote:

Originally Posted by Bill Haverchuck
(Post 643182)

His overall NBA playoff track record sucks. But, to be fair, he did get to the EC finals in 2009 and helped Denver push the eventual champs (Lakers) to 6 games.

I really don't like his current attitude, but he was a dominant force in the 2009 playoffs. I think it's possible he could find that game again. I don't think he'll do it in New York with the current roster, but he might alonside another lineup. It wouldn't hurt if there was a strong vet presence, similar to Chauncy, saying "you ain't jacking 30 shots bro....let's get you 18-20 quality looks and move the ball"

I agree he's not good, but I don't blame him for his post season failures.

In his rookie year (03-04) he played a Minnesota team that won 58 games. Lost in the first round...but he's a rook so you can't really blame him here.

The following season he was eliminated in the first round by a Spurs team that ended up winning the championship. Can't blame him here.

The next season (05-06) he lost to LAC in the first round. His 3rd season. This is the only season he might have been reasonably expected to win a series but lost.

The next year he lost to the Spurs in the first round who ended up winning the championship. Can't blame him here.

The next year (07-08) he lost to LAL in the first round who ended up going to the Finals and lost in 6 games to BOS. Can't blame him here.

The next season he beat NOH and DAL, and lost to the LAL in the WCF in 6 games. Lakers ended up winning the championship. Can't blame him here.

The next season (09-10) he lost to UTH first round. I guess he should have won here but this is the season George Karl had cancer and wasn't able to coach the team. That had to hurt Denver's chances and I give Melo a pass here.

The next season (last year) he played BOS in the first round but didn't have Amar'e and Billups for most of the series. Had to play with bums like Tony Douglas, Bill Walker, Jared Jeffries, and Ronnie Turiaf. They nearly won the first two games, but no way he was expected to win that series by himself.

Then this season he goes up against the best team in the NBA in the MIA Heat. No way he was expected to win, especially with injuries to Lin and Shumpert. Amar'e can't play with Melo (and vice-versa). Amare' also can't play with Chandler. Amar'e needs to go IMO. So again, you can't blame him here.

The one thing you can say about Anthony is that he hasn't won enough in the regular season. Maybe if he won more games he wouldn't have to be matched up with top seeds in the first round (like LAL, MIN, and SAS twice). He sucks as a player, but one cannot reasonably expect him to win many of the series he's played in.

jeffb

05-12-2012 10:31 PM

Quote:

Originally Posted by ClutchCity
(Post 643219)

The one thing you can say about Anthony is that he hasn't won enough in the regular season. Maybe if he won more games he wouldn't have to be matched up with top seeds in the first round (like LAL, MIN, and SAS twice). He sucks as a player, but one cannot reasonably expect him to win many of the series he's played in.

His last 4 seasons in Denver they won 50, 54, 53, 50. Don't know if they could have done much better. The West from 2005-10 was absolutely insane. There was one year where Denver got the 8th seed (barely) with 50 wins.